Information Minister Fawad Chaudhry appreciated the government’s decision to increase the salaries of its employees by 15%. According to Fawad Chaudhry, the move shows the strong condition of the economy.
To clarify, earlier, the federal government announced a 15% disparity allowance for Grade 1 to 19 employees. The Ministry of Finance announced that the disparity allowance will be applicable from March 1. The package has also recommended to the provinces to adopt the same from their own funds. According to the Ministry of Finance, the Finance Division has also prepared a summary for the promotion of employees at the appropriate time.
Reacting to the news, Minister Fawad Chaudhry said that Imran Khan was transforming Pakistan into an Islamic welfare state.
Read more: Can Imran Khan’s Pakistan truly become a welfare state?
“15% increase in salaries after health card, at present the economy of the country is on its feet. Inshallah, the income will increase further in one year. Imran Khan is making Pakistan an Islamic welfare state,” Fawad Chaudhry tweeted.
صحت کارڈ کے بعدتنخواہوں میں 15 فیصدمزید اضافہ ، اس وقت ملک میں معیشت اپنے پاؤں پر کھڑی ہو رہی ہے انشاللہ ایک سال میں آمدنیوں میں مزید اضافہ ہو گا عمران خان پاکستان کو اسلامی فلاحی مملکت بنا رہے ہیں اور تمام اقدامات اسی منشور کو سامنے رکھ کر لئے جا رہے ہیں #PTIGovernment
— Ch Fawad Hussain (@fawadchaudhry) February 10, 2022
Important to note, this is the second time the government increased salaries in the current fiscal year. In 2021, the government made a block allocation of Rs160 billion for providing 10 percent raise in salaries and pensions to the public sector employees during the current fiscal year 2021-22.
While Minister Fawad Chaudhry thinks the increase in salaries is a testament to Pakistan’s strong economy, the country recently reported a 13% increase in inflation.
Pakistan’s high inflation rates
Data from the Pakistan Bureau of Statistics (PBS) showed the inflation rate continued its upward trajectory for the fifth consecutive month and reached another peak of 13% in January, making it the highest in nearly two years.
The Wholesale Price Index (WPI), which captures prices in the wholesale market, also rose sharply by 24% in January compared to 6.4% in the same month a year ago. The food inflation rate in villages and cities surged to 13.3% and 11.8% on a yearly basis.
The government continues to maintain that the inflation rates are temporary. It is also looking into ways to cushion the impact of inflation on the public. However, the economic conditions of Pakistan continue to turn alarming. In fact, Finance Minister Shaukat Tarin already announced another possible petrol price increase in the near future.
Read more: Petroleum products to get expensive in international market this year
Minister Tarin highlighted that the Ukraine—Russia conflict has increased the oil prices significantly. This leaves the government with no choice but to pass the prices hikes on to the public. If the government of Pakistan again raises the prices of petrol, then it will have a domino effect on the rest of the commodities.